July 11, 2018 — Whether it’s Iowa soybeans or Alaskan salmon, don’t expect the tariffs China is imposing on the U.S. to fall equally. Some states are at more risk than others.
Farm and seafood-producing states are going to be hit hardest by China’s new tariffs on U.S. goods, according to an analysis by Paul Armstrong-Taylor, resident professor of international economics at the Hopkins-Nanjing Center at Nanjing University in China. States where cars and SUVs are made and shipped to China are on the hook, as well.
The Chinese government imposed $34 billion in new duties on goods exported from the U.S. last week in retaliation for the Trump administration’s round of tariffs aimed at driving better deals on trade. Economists have warned the trade war could risk jobs, industry profits and lead to higher prices for consumers.
“Agricultural states, I think, are being hit the hardest,” said Rodney Ludema, a Georgetown University professor and former senior international economist in the White House Council of Economic Advisers under President Barack Obama. The tariffs spare states “that are heavily service-dependent, like New York.”
In terms of value, some 38 percent of products on the tariff list are agricultural, including soybeans, sorghum, tobacco and meat, said Chad Bown, a senior fellow at the Peterson Institute for International Economics. That’s bad news for farm-belt states, primarily in the Midwest.